$10 Per Share for Bear Stearns?

Multiple news outlets tonight are reporting that JP Morgan Chase Co. is in talks to increase its offer for Bear Stearns from $2 per share up to $10 per share.

Apparently JP Morgan figures that the revised offer will "win over" stockholders who were extremely pissed off about the proposed $2 buyout price.

According to published reports, the Fed, which apparently must approve any new deal, is "balking" at the new offer price. The reported reason: the Fed doesn't want it to appear as though they are bailing out shareholders.

Reports also suggest that Bear Stearns is looking to authorize the sale of 39.5% of the firm to JP Morgan, which is allowed under Delaware state law without shareholder approval (40% is the number that requires shareholder approval). The reason? This would require only an additional 10.5% of shareholder votes to push the deal through.

Bear Stearns closed at $5.96 on Thursday as investors continued to bid up the stock, hoping for a revised deal.